During a drought, the price elasticity of demand for water is less than one. During a flood, the price elasticity of demand for water is greater than one. This means that the:
a. demand for water is elastic during a drought and inelastic during a flood.
b. demand for water is inelastic during a drought and elastic during a flood.
c. demand curve for water cannot have a constant slope.
d. quantity of water people choose to consume is independent of the price
Ans: b. demand for water is inelastic during a drought and elastic during a flood.
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